By: Mariana Calvo R.
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Assisting Artha Capital with its fifth CKD fund and debut issuance.
Nader, Hayaux & Goebel has helped Mexican private equity fund Artha Capital create its fifth CKD fund worth 12 billion pesos (US$632 million) and complete its debut issuance.
After having launched their fourth fund focused on the entire real estate value chain, Artha Capital will now focus investments of this CKD in the mixed use and tourism real estate sector.
The fund is structured using two separate certificates classes: one series for up to 4.45 billion pesos (US$235 million), which issued last month, and another series for up to 7.55 billion pesos (US$398 million). The second series will be used for future investments that may exceed the first series’ value or that are not within the first series’ eligibility requirements. On closing, investors contributed 20% of their committed investment to the debut issuance.
Having successfully placed a land bank fund, an income producing fund, an energy infrastructure fund (Q1 2015), and most recently (Q4 2015) a comprehensive real estate fund, this will be Artha Capital’s fifth fund in less than six years. Considering that the main investors of a CKD structure are Mexican pension funds, which are tax exempt, finding an efficient tax and legal structure is necessary to ensure an optimal return for their investment.
This deal was covered by Latin Lawyer.